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No, it does not. The debt ratio measures the ability to pay for both current and long term debts. This is calculated by dividing total liabilities over total assets. Owner's capital OS part of stockholders' equity.

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Is tax recoverable deducted from current assets in calculation of quick ratio?

yes


What is a good ratio for capital asset?

A good ratio for capital assets typically refers to the capital asset turnover ratio, which measures how efficiently a company uses its capital assets to generate revenue. A ratio greater than 1 indicates that the company is generating more revenue than the value of its capital assets, which is generally viewed positively. However, the ideal ratio can vary by industry; capital-intensive industries may have lower ratios, while service-oriented sectors might aim for higher ones. It's essential to compare the ratio against industry benchmarks for meaningful insights.


Equity capital to total assets ratio?

Bank capital to assets is the ratio of bank capital and reserves to total assets. Capital and reserves include funds contributed by owners, retained earnings, general and special reserves, provisions, and valuation adjustments. Capital includes tier 1 capital (paid-up shares and common stock), which is a common feature in all countries' banking systems, and total regulatory capital, which includes several specified types of subordinated debt instruments that need not be repaid if the funds are required to maintain minimum capital levels (these comprise tier 2 and tier 3 capital). Total assets include all nonfinancial and financial assets.


Is 1.26 current ratio good?

It depends on the nature of business as well as the capital intensity of the business if business is capital intensive the high current ratio required otherwise it is not required to maintain high current ratio


How can one calculate the working capital ratio?

One can calculate the working capital ratio by: Totalling ones current assets and current liabilities, working capital is calculated by subtracting the current assets from current liabilities. The ratio is calculated by dividing the current assets by the current liabilities.

Related Questions

Is car insurance included in the debt-to-income ratio calculation?

Car insurance is typically not included in the debt-to-income ratio calculation because it is considered a variable expense rather than a fixed debt obligation.


Is property tax included in the debt-to-income ratio calculation?

Yes, property tax is typically included in the debt-to-income ratio calculation as it is considered a recurring expense that affects a person's ability to repay debts.


Are taxes and insurance included in the debt-to-income ratio calculation?

Yes, taxes and insurance are typically included in the debt-to-income ratio calculation. This ratio compares a person's monthly debt payments to their gross monthly income, including expenses like taxes and insurance.


Are property taxes included in the debt to income ratio calculation?

Yes, property taxes are typically included in the debt-to-income ratio calculation. This ratio is used by lenders to assess a borrower's ability to manage their monthly debt payments, including property taxes, in relation to their income.


How do you calculate CD ratio?

cd ratio calculation


What are the most five important ratios for banks?

current raiot, working capital ratio, liquidity ratio, capital adequacy ratio, net asset ratio


How do you calculate net capital ratio?

Net Capital Ratio =Total assets / Total Liabilities


Do we consider loans and advances for calculation of current ratio?

yes


What is meant by the interest coverage ratio?

The interest coverage ratio is the calculation that determines a company's ability to repay debt payments. It is this calculation that determines whether or not companies are able to obtain loans.


What is Compound Ratio?

Expression of Compound Ratio - x : y : z For example, a calculation of compound ration may be expressed as x:y:z = a:b:c Note that its calculation has to decompose their ratio expression above into the following, x:y = a:b AND y:z = b:c


How Capital Adequacy Ratio of a Bank is arrived?

The Capital Adequacy Ratio of a bank is arrived at by comparing the sum of its Tier 1 and Tier 2 capital to its risk. The equation for expressing the Capital adequacy ratio is: CAR=(Tier 1 Capital +Tier2 Capital)/Risk weighted assets.


What is the formula for capital turnover ratio?

Capital turnover = Sales/ Invested capital